Market Value Creation Research Articles

Influence of Market Attractiveness and Value Creation on Reputation of Beauty Shop Industry in Jakarta

Influence of Market Attractiveness and Value Creation on Reputation of Beauty Shop Industry in Jakarta

The consumer production journey: marketing to consumers as co-producers in the sharing economy

New digital technologies not only support consumers in better fulfilling their own consumption needs but also enable them to create greater value for other consumers. These new consumer co-production activities, collectively referred to as the sharing economy, require firms to rethink their role in the marketing value creation process. Firms need to define new marketing actions that create value for consumers who are also co-producers. To address this challenge, we propose a two-layered conceptual framework of consumer co-production networks and the individual consumer production journeys therein. These concepts expand the traditional production model and consumer journey, respectively, explicitly taking into account consumer co-production activities. Within the framework, we draw on household production theory combined with insights from institutional design theory and consumer behavior research to analyze how marketing can support consumers’ co-production activities. We discuss the managerial and consumer welfare implications of our analysis and outline new opportunities for further research.

Do Global Financial Markets Capitalise Sustainability? Evidence of a Quick Reversal

This study investigates the growing importance of sustainability in equity markets by estimating whether company commitment to sustainability matters in corporate valuation. The spreading concern for social and environmental issues, and especially for the material risks of climate change, induces policy to encourage companies to prioritise sustainability in their decision making. There is growing evidence that points to a rationale for a profit-driven response to social and environmental problems, uncovering the role of sustainability in investors’ decisions. Exploring a panel of 3,311 listed companies in 58 countries for the period 2010-2016, this study reveals that sustainability contributes to the creation of market value for listed companies, over the considered period. Furthermore, it investigates how this relationship changes according to environmental policy stringency and sector sensitivity to climate policies.

The Consumer Production Journey: Marketing to Consumers as Co-Producers in the Sharing Economy

New digital technologies not only support consumers in better fulfilling their own consumption needs, but also enable them to create greater value for other consumers. These new consumer co- production activities, collectively referred to as the sharing economy, require firms to rethink their role in the marketing value creation process. In particular, firms need to find new ways to create value for consumers who are also becoming producers. To address this challenge, we propose a two-layered conceptual framework of consumer co-production networks and the individual consumer production journeys therein. These concepts expand the traditional production model and consumer journey, respectively, explicitly taking into account consumer co-production activities in the value creation process. Within this framework, we draw on institutional design theory and household production theory to analyze how marketing functions can support consumers’ co-production activities. We conclude with a discussion of managerial and consumer welfare implications, and of new opportunities for further research.

Value Drivers Of Gcc Firms-An Empirical Study

Identification of value drivers for value creation is an important element of strategic management. This study explores the impact of financial and operational drivers on value creation of firms in the GCC market. The study analyses the impact of variables involving investment, financing and dividend decisions on value creation of GCC firms. The study aims to understand the determinants of market value creation in GCC firms. The study was based on 646 GCC firms. The Partial Least Squares Structural Equations Modelling (PLS-SEM) was used to examine the determinants of value creation. The study applied the Wrap PLS software for analysis. The path of value creation and its relationships with different important latent variables in GCC was first examined using linear model. The nonlinear model is also tested and the results were similar to the linear model in terms of significance and signs of path coefficients. The internal consistency reliability of reflective measures is analyzed through composite reliability and Cronbach's alpha. The study documents that size of the firm is an important determinant for value creation in GCC firms. Management efficiency and profitability are other determinants of value creation among GCC firms. There exists negative relationship between liquidity and value creation. Riskier firms tend to create lower market value for GCC firms. Firms with higher agency costs tends to be more profitable. Higher management efficiency leads to more profitability for firms. Profitable firms tend to become more dividend intensive. Higher leverage inversely affects profitability. The study finds negative relationship between risk and profitability. High capital investments signals less profitability for firms. Large firms are found to be more profitable. Riskier firms tend to be less profitable. The study suggest that fundamental performance is the ultimate driver of value creation. Firms which focus on operating performance tend to be value creators. Firms with high risk characteristics create less value for firms. Firms with higher profits tend to pay more dividends. Financing decision also affects value creation for firms. Management efficiency is an important driver for value creation.

Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs

Our paper examines one of the key aspects of the organizational economics – the factors of economic success and sustainability of the pharmaceutical small and medium enterprises (SMEs) in India. Indian pharmaceutical industry is known for its high fragmentation and weak generic based R&D initiatives. The study uses inflation adjusted cross section data for 20 SMEs in the year 2013-2014 and applies OLS regression model with robust standard errors. It has found that exports, R&D expenditure, and previous year profits have exercised positive impact on SMEs' growth. The negative, yet statistically significant influence of advertising and marketing expenditure highlights the need to rethink about strategic management policies of SMEs. Our results suggest that SMEs are required to pay more attention towards the global market expansion and value creation through R&D investment, as a part of their long-term growth and survival strategy.

Drivers of supplier-customer relationship profitability in China: Assessing International Joint Ventures versus State Owned Enterprises

Business relationship performance depends on the context(s) in which the relationship is being conducted, including the cultural context and the nature of the organizations participating in them. Here, we examine the drivers of performance in Chinese supplier-customer relationships for two types of Chinese suppliers - International Joint Ventures (IJVs) and State Owned Enterprises (SOEs). The results indicate there are marked differences in the links between relationship drivers and perceived relationship profitability for these different types of suppliers. The profitability of SOEs' customer relations is associated with ongoing personal and hierarchical linkages, whereas for IJVs, it is associated with interactive product adaptation and production planning. Drivers with significant associations for both types of suppliers include relational quality and financial exchange factors. This research has implications for the ongoing management of international supplier-customer relationships, Chinese government policy with regard to SOEs as well as the inclusion of organization types as a consideration for business marketing relationship and value creation theory.

Effect of Financial Leverage on Firm's Market Value Creation in Bangladesh

This article contends that a firm's performance is affected by various factors and capital structure is one of the factors among them. The basic objective of the research is to analyze and compare the impact of financial leverage on firms' Market to Book Value (MV/BV) and Tobin's Q ratio of DSE-listed MNCs & domestic firms of Bangladesh over a 20-year period (1996-2015). Explained variables are Market to Book Value (MV/BV) and Tobin's Q ratio. Explanatory variables of the interest are indicators of six financial leverage ratios. MV/BV is negatively related with leverage ratios of both types of companies. Domestic companies' MV/BV decreases by 0.016 times for 1% increase of debt ratio while MNCs' MV/BV decreases by 0.048 times for 1% increase of debt-equity ratio and vice-versa. With debt-equity ratio, domestic companies' Tobin's Q is positively related while that of MNCs is negatively related.

Embodied Value Co-creation: A Turn-taking Perspective on Service Encounter Interactions

This article aims at advancing research on value creation in service marketing by applying theories of turn-taking and multimodality. It is argued that there is a need to uncover what is inherent in the prefix ‘co’ in value co-creation and that focus needs to be broadened, from perception of value to the production of value, that is, the specific reciprocal and embodied actions in service encounters. For the analysis, an empirical study of complex interactions between service providers and customers is used. A practice approach is applied, combining interviews and observations of interactants in situ. The article identifies four specific turn-taking patterns, ranging from ‘simple’ to ‘elaborated’, defined by their character and that uncover how the interactants reciprocally use multiple modes in the production of social outcomes. Theoretically, the study contributes to more fine-grained explanations to what explains the creation (and destruction) of value.

Seek or destroy? Examining value creation and destruction in behaviour maintenance in social marketing

ABSTRACTThis article presents an empirical investigation of how behaviour maintenance is supported or hindered through value creation and destruction in social marketing. Using a longitudinal, netnographic approach, we identify and examine the key facilitators and barriers encountered during the maintenance of physical and mental health behaviours. Data were collected over a 12-week observation period via Twitter from a sample of 242 participants. A total of 5212 tweets were analysed using content and thematic analysis facilitated by NVivo software program. The findings identify key barriers to and facilitators of behaviour maintenance at the individual level (downstream), meso level (midstream), and policy level (upstream) that have an influence on value creation and destruction in social marketing. These findings demonstrate the importance of employing a strategic and integrated approach to social change management.

Specifications, sectors, nationality and experience: what matters for the success of mergers and acquisitions strategy?

This study characterizes the Mergers and Acquisitions (MAs) processes that achieved better performances in internal value and synergy generation. The MA theme is not particularly new in the strategy literature, which does not mean that it is consolidated, at least not from the point of view of these strategies results. Academic literature on the topic stablishes that the search for synergies is the key reason for these strategies, although the measurement of these synergies is not a simple task. This study evaluated 154 MAs processes using three variables related to market value creation and operational efficiencies creation. The MA processes were classified according to the type of agglomerative process, economic sector, nationality and positioning of companies in the production chain. Statistic data were analyzed with descriptive statistics, variance analysis and cluster analysis. The results indicate that most of the cases resulted in mild negative or positive results, with no significant differences between the results of processes carried out in different sectors of the economy. The cases that achieved better results were those in which companies already had previous experience in MA and held knowledge of the acquired enterprise, which reiterates the need for prior planning and analysis to the generation of the expected synergies and value creation.

Market Value Creation through International Expansions: Evidence from Fortune Global 500 Firms

Although international expansion often enables firms to enhance their existing businesses, extant studies have not fully explained the drivers of international expansion success. Underpinning the belief that changes in a firm’s market value in response to an international expansion reflect the anticipated changes in the firm’s future expected cash flows resulting from this expansion, the author attempts to develop a theoretical model that may explain the effects of a firm’s international diversification on its market value creation and the moderating roles of the host-market type and the firm’s expansion strategy. The model is empirically tested using a sample of 253 international expansion announcements of firms listed in the Fortune Global 500 for the period between 2006 and 2015. Using an event study method and a linear modeling technique, the author finds that the international diversification of large international firms positively affects market value creation and that international expansions do not equally affect the market value across firms and markets. This manuscript is concluded with a discussion of important implications regarding theoretical and managerial contributions and research limitations some of which suggest plausible avenues for future research.

Midstream value creation in social marketing

ABSTRACTThe purpose of this study is to develop improved understanding of how value is created at the midstream (meso) level in a collaborative smoke-free homes and cars social marketing programme. The study adopts a qualitative approach including interviews and observation. The findings show that the co-creative organisational model adopted for the Smokefree programme affords access to resources and capabilities of midstream actors and provides opportunities for reshaping and mobilising existing value networks. The focal organisation has a key role in coordinating, connecting actors and providing resources to facilitate value co-creation at the network level. The study illustrates that the service interaction allowed for customer-centred cues for action which took into account their context and the existence/lack of resources for value creation. The implications of this study are discussed, in particular, in terms of the role of focal organisations in managing value networks, the social context, configurational fit and resources of actors involved in community-based social marketing and the need for policies and practices to provide health professionals with role support for health promotion.

Marketers are consumers too: integrating consumer-self in potential value creation

Purpose The purpose of this paper is to explore the extent to which a marketer’s own priorities as a consumer infiltrate workplace decision-making and how this contamination influences the creation of potential value for the end consumer. The “black box” of the organisation is opened to investigate potential value creation at an individual/manager level of analysis. Design/methodology/approach The authors gathered in-depth qualitative data from amongst marketing managers and directors in the UK, Australia and the USA. The authors theorised these data through boundary theory to develop an integrated producer-as-consumer potential value creation model. Findings The paper reveals the dynamic interplay in marketing/production decision-making between the individual’s consumer-self, manager-self and the external interface with the organisation. Research limitations/implications The producer-as-consumer potential value creation model illuminates the complex role of the firm and its individual managers in the creation of potential value and identifies contingencies that result in a spectrum of possible potential value creation outcomes. These contributions are positioned within the marketing value creation and co-creation literatures. Practical implications Marketing organisations/managers may find this research useful when considering the benefits and drawbacks of integrating managers’ consumer-self insights into workplace decision-making and the creation of potential value for the end consumer. Originality/value This paper moves value creation/co-creation theory forward by revealing the dynamic potential value creation process and presenting a fluid representation of producers-as-consumers, at individual manager level. This paper is of interest to academic and marketing practitioner audiences.

Clinical Endpoints and Economic Parameters for Market Access and Value Creation

On the contrary to limited and shrinking health care budgets, there is an ever increasing pressure on healthcare system providers for more and newer resource-oriented health care along with significant cost constraints. Therefore, one should not be surprised if an effective new therapy does not find its way in practice within publicly funded health care systems. The influence of any therapy on health care costs and outcomes is essential important and is most often considered by decision makers, who have difficult task of making a choice whether already scarce resources should be invested in providing a the therapy or not. Usually simultaneous use of economic evaluation helps estimate the clinical benefits and costs of a therapy. Evidence of value for money is increasingly desired along with clinical safety and efficacy by stakeholders spread across formulary committees, reimbursement authorities, and national health-care systems etc. Today a variety of tools and techniques are available for conducting economic analyses of medical interventions, however one of the most common methodological approaches is to collect data on outcomes and costs alongside clinical trials. Moreover, the opportunities presented by utilizing real world evidence model in day-to-day clinical setup should be well utilized for capturing economic endpoints. Physicians, Patients, payers, providers and policy makers the 5 Ps are looking for awareness, adoption, affordability and accessibility the 4As. To achieve this Clinical-economic evaluation is critical for any new technology.

M&As and market value creation in the information security industry

Facing mounting competition from large information technology (IT) conglomerates, information security firms have engaged in a multitude of mergers and acquisitions (M&As) to survive and remain profitable. In this paper, we uncover some characteristics that make these M&As valuable to the acquiring firms’ stock market value. Using a combination of event study and regression analyses, we analyze longitudinal panel data from 787 M&As initiated by 174 public information security firms between 1998 and 2011. We find that, on average, M&As are associated with an increase in the stock market value of information security acquirers. Moreover, our results show that whereas smaller information security acquirers gain more from domestic diversification, larger information security acquirers are better off seeking M&A targets internationally within their line of business, especially during good economic conditions. Our analysis also reveals that M&As with identity and access management (IAM) targets are perceived favorably by the stock market regardless of other M&A characteristics. This paper contributes an information security-IT complementarities framework that, along with our findings, carries valuable managerial insights.

An Investigation of the Open Innovation Landscape of Fish and Seafood Processing Industry in United Kingdom

Co-creation or open innovation so far been studied mainly on product and process development in high-tech manufacturing industries. This paper attempts to investigate the involvement of external sources on fishery resource conservation in the UK. Drawing on a data collected from 32 small, medium and large fish and seafood processors and retail chains, we have investigated the positive contribution of external sources on resource conservation measures. Large processors and retail chains manage bigger networks and maintained close links with external crowds compared to small and medium. Creation and implementation of conservation measures through co-creation is common strategic tool and top gainers of the process were large processors and retail chains. Winning respect, establish trust among partners, build market image, value creation and brand promotion were the key perceived benefits.

Changes in Perceptions of the Internet’s Influence on Marketing in South Africa since the Late-1990s

The present paper reports on a study that compared senior marketers' perceptions of the Internet's influence on marketing in South Africa in 1997 with their perceptions nearly two decades later in 2011. In South Africa, the predicted value of the Internet economy is expected to rise from R59 billion at the end of 2013 to R100 billion in 2016, thereby accounting for 2.5% of the country's Gross Domestic Product (GDP). A cross-industry survey of the marketing practitioners at the Johannesburg Stock Exchange's top 100 companies was conducted using a self-administered questionnaire. Ranked means were used to compare senior marketers' perceptions concerning the Internet's influence on the conceptualisation of marketing activities, market definition and value creation between the 1997 and 2011 studies. In addition, a two independent-samples t-test was used to compute whether there were statistically significant differences between the 1997 and 2011 perceptions. The findings of the research suggest that in 2011, marketers perceived the Internet to have a statistically significant lower influence on doing a better job selling, expanding the size of a target market, targeting new customers in current markets and adding new segments than those in the 1997 study.

International Evidence on Value Creation in Private Equity Transactions

Understanding value creation at the transaction level is at the heart of explaining private equity (PE) returns. Taking advantage of a proprietary sample of 2,029 international buyout deals executed between 1984 and 2013 we provide detailed evidence on financial, market and operational value creation drivers. Additionally, we unravel the differences in value creation between regions, industries, transaction sizes and over time, providing limited and general partners with the opportunity to compare their past transactions with those of their respective peer groups.

MARKETING VALUE CREATION FOR COMPETITIVE ADVANTAGE OF THAI FOOD INDUSTRY

ABSTRACT Based on marketing value creation, contingency theory and resource based view, this study aims to examine internal environmental factors of a corporation including vision for change, corporate culture, structural flexibility, technological capability, and human resource management. Competitive advantage and firm performance are dependent upon each other. Marketing value creation is a mediator. In addition, demand uncertainty and competitive intensity are moderators as external environment factors. This study concludes that the internal environment factors influence marketing value creation. The external environmental factors benefit a firm and create a competitive advantage. Moreover, a firm seeks efficiency. Entrepreneurs know marketing value creation approach to develop production and marketing for a competitive advantage. Theoretical contributions can be implemented by collecting data for future research. Keywords Marketing value creation; Competitive advantage; Competitive intensity; Demand uncertainty